A coalition of groups in Alabama is pushing legislation to place tighter regulations on payday and title loans, including limiting interest to 36 percent annually. The groups, including the Southern Poverty Law Center, Arise Citizens’ Policy Project, and AARP, say payday loans and title loans are “a paradise for predatory lenders.” At a news conference last month, representatives of the groups said interest rates can hit 456 percent annually for payday loans and 300 percent for title loans. In addition to limiting interest rates, the groups are proposing bills that limit the number of loans a borrower can get each year.
The president of the loan industry group, Max Wood of Birmingham, says 36 percent would close down businesses because that wouldn’t cover costs. He says customers would be left to deal with unregulated Internet lenders. Hopefully, the Republican-controlled Alabama Legislature will give this legislation fair hearings and will allow a vote on this bill. If that happens, the legislation will pass and the public will be the winners.
Source: CBS 8 News
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.